Spotify subscriber numbers grew considerably within the second quarter of the 12 months, says the corporate, citing massive development in each free and paying customers …
The corporate reported “a really robust quarter” as income and subscriber numbers each exceeded its personal steerage for the quarter.
Paying subscribers grew 27% year-on-year to 220M, and month-to-month energetic customers elevated 17% to 551M. The corporate additionally highlighted an 11% development in income to €3.2B ($3.5B).
All the identical, the corporate continues to be shedding cash, and The Verge notes that its losses greater than doubled year-on-year.
The corporate made a internet lack of €302 million (round $333 million) this quarter, versus a lack of €125 million (round $138.5 million) in the identical quarter final 12 months.
9to5Mac’s Take
Whereas Spotify insists it prioritizes development over revenue, there’s no signal that the corporate has a transparent plan for ever attaining profitability.
Streaming music is a really powerful enterprise to be in, with the majority of the subscription income going straight to music labels, and the little remaining steadiness being eaten up in working and advertising and marketing prices. A value rise might assist just a little, however seemingly not sufficient.
Spotify has additionally been left behind by Apple Music and others by way of lossless music and spatial audio.
Whereas the iPhone maker seemingly additionally makes no cash from its streaming music service, that’s not an issue: Apple Music is just one other a part of the ecosystem that drives {hardware} gross sales. Spotify, in distinction, has no income stream past subscriptions and advertisements, neither of which pays the payments.
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